History: On August 17, 2021, the Hennepin County Board of Commissioners authorized $46,000,000 in Federal Pandemic Funds for equitable housing recovery strategies (Resolution 21-0305):

• Investments to immediately increase affordable multifamily housing production, such as:

• Gap funding for affordable housing projects serving populations disproportionately impacted by the COVID-19 public health emergency
• Investments to address a backlog of deferred rehab need in Naturally Occurring Affordable Housing (NOAH) properties (a primary source of housing for populations disproportionately impacted by the COVID-19 public health emergency) and support for additional non-profit preservation acquisition of at-risk NOAH properties

• Acquisition of properties supporting affordable housing along the housing continuum, especially single adults experiencing homelessness/housing instability

• Homebuyer Assistance programs targeting populations disproportionately impacted by the COVID-19 public health emergency.

Resolution 22-0136R1 (adopted March 22, 2022) authorized the County Administrator to rescind the funding source for any prior board action that authorized use of Federal Pandemic Funds for pandemic recovery activities in order to use other resources for the same activities. The County Administrator has accordingly rescinded the original funding source for Resolution 21-0305 and designated other resources for the previously authorized equitable housing recovery strategies. 

After review by the County Attorney’s Office, it has been determined that the Hennepin County Housing and Redevelopment Authority (HCHRA) offers the most straightforward, independent statutory authority for administering equitable housing recovery programming. 

Resolution 22-0143 (adopted April 19, 2022) transferred $3,316,000 to the HCHRA for single room occupancy property acquisition. Additionally, Resolution 22-0143 authorized $1,700,000 for single room occupancy construction and rehabilitation by the Facility Services department. The Hennepin County Board of Commissioners approved transferring the remaining $40,984,000 of the previously authorized $46,000,000 to the HCHRA for ongoing deployment and administration Resolution 22-0178 (adopted May 17, 2022).

In late 2021 and early 2022, housing recovery strategy request for proposals (RFPs) were released, applications reviewed, and funding awards approved by the County Administrator under Resolution 21-0305:

Pandemic-related construction cost increase RFP, released November 10, 2021, $2,000,000

·         PR00004234 – Project for Pride in Living – BloomLake Flats – $459,308

Minneapolis; 42 units with 28 at 30% of AMI and 14 at 50% of AMI

·         PR00004235 – Aeon – The Crest – $250,199

Brooklyn Center; 171 units with 11 at 30% of AMI, 101 at 50% of AMI, and 59 at 80% of AMI

·         PR00004236 – Aeon – Sound on 76th – $438,035

Edina; 70 units with 8 at 30% of AMI, 35 at 50% of AMI, and 27 at 80% of AMI

·         PR00004237 – Alliance Housing – 3301 Nicollet – $152,458

Minneapolis; 64 units with 24 at 30% of AMI and 40 at 50% of AMI

·         PR00004238 – CommonBond Communities – Rise on 7 – $700,000

St. Louis Park; 120 units with 19 at 30% of AMI, 60 at 50% of AMI, and 41 at 80% of AMI

Naturally Occurring Affordable Housing (NOAH) preservation RFP, released December 21, 2021, $4,605,924

·         PR00004257 – Alliance Housing – Property Stabilization – $419,267

Minneapolis; 12 units with all 12 at 50% of AMI

·         PR00004258 – Aeon – Huntington Place – $3,500,070

Brooklyn Park; 834 units with 167 at 50% of AMI and 667 at 80% of AMI

·         PR00004259 – Ascension Place – Next Step Housing – $86,094

Minneapolis; 12 units with all 12 at 50% of AMI

·         PR00004260 – Aeon – Carrington Drive – $600,493

Brooklyn Center; 128 units with all 128 at 60% of AMI

Affordable Housing Accelerator, released in the Coordinated Affordable Housing RFP January 6, 2022, $17,500,000

·         PR00004360 – JO Companies – Wangstad Commons – $569,463

Brooklyn Center; 54 units with 16 at 30% of AMI and 38 at 60% of AMI

·         PR00004380 – Seward Redesign/Noor – Wadaag Commons – $664,771

Minneapolis; 38 units with 27 at 30% of AMI and 11 at 60% of AMI

·         PR00004385 – Project for Pride in Living – 3030 Nicollet – $4,983,252

Minneapolis; 110 units with 12 at 30% of AMI and 97 at 50% of AMI

·         PR00004379 – Beacon Interfaith – Emerson Village - $800,000

Minneapolis; 40 units with 26 at 30% of AMI and 14 at 50% of AMI

·         PR00004389 – Trellis – Calvary Apartments – $5,880,000

Minneapolis; 41 units with all 41 at 30% of AMI

·         PR00004391 – Riverfront Development Company/Trellis – The Resolute – $700,000

Minneapolis; 71 units with 4 at 30% of AMI and 67 at 50% of AMI

·         PR00004411 – Matrix Development, LLC – Plymouth Avenue Apartments – $3,902,514

Minneapolis; 63 units with 20 at 30% of AMI and 43 at 50% of AMI

Homeownership Assistance, released in the Coordinated Affordable Housing RFP January 6, 2022, $2,500,000

·         PR00004363 – West Hennepin Affordable Housing Land Trust – Homes Within Reach – $500,000

Suburban Hennepin; 12 units with 2 at 50% of AMI, 8 at 60% of AMI, and 2 at 80% of AMI

·         PR00004382 – Greater Metropolitan Housing Corporation – Minnetonka Boulevard Redevelopment – $580,000

St. Louis Park; 8 units with 2 at 60% of AMI and 6 at 80% of AMI

·         PR00004386 – City of Lakes Community Land Trust (CLCLT) – Homebuyer Initiated Program – $300,000

Minneapolis; 10 units with all 10 at 80% of AMI

·         PR00004388 – Project for Pride in Living/CLCLT – Portland Place – $270,000

Minneapolis; 9 units with all 9 at 60% of AMI

·         PR00004392 – Twin Cities Habitat for Humanity/CLCLT – Harrison Townhomes – $850,000

Minneapolis; 17 units with 10 at 60% of AMI and 7 at 80% of AMI

Conversion of tax-forfeit property to homeownership

·         City of Minneapolis – Minneapolis Homes – $600,000

Minneapolis; 17 units with all 17 at 80% of AMI

Staff recommends the above RFPs and subsequent 22 awards/agreements (Attachment A) be transferred to the HCHRA for ongoing administration.

The HCHRA will release additional RFPs throughout 2022 to program the remaining funds designated for equitable housing recovery.

Request: Accept transfer of $40,984,000 in pandemic recovery funds for eligible costs, operations, staffing, and services to advance equitable housing recovery strategies; accept the transfer of three Hennepin County housing recovery strategy RFPs and 21 agreements previously approved by the county.

Impact/Outcomes: Approval of this request will create or preserve 1,942 units of affordable housing. Specifically:

• create 884 units of affordable rental housing, of which 236, or 27 percent, are affordable to households at or below 30 percent of the area median income (AMI), and 707, or 80 percent are affordable to households at or below 50 percent of AMI;

• preserve 986 units of affordable housing; and

• create 73 new affordable homeownership opportunities.

Housing Domain Disparity: Households of color are disproportionately housing cost burdened and will benefit from an increase in affordable housing preservation/production.